Showing 57 - 64 of 303 results
AFRC reprimands PricewaterhouseCoopers and two others for multiple audit deficiencies and imposes fines totalling HK$1.6 million
AFRC reprimands PricewaterhouseCoopers and two others for multiple audit deficiencies and imposes fines totalling HK$1.6 million 16 October 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned the following PIE audit firm and two individuals who held partner roles during the relevant audits for multiple audit deficiencies related to revenue recognition involving a Hong Kong listed company, Dynasty Fine Wines Group Limited ( Company ) 1 and its subsidiaries (together, Group ), for the years ended 31 December 2010 and 31 December 2011 ( 2010 Audit and 2011 Audit respectively): PricewaterhouseCoopers ( PwC ); 2 Mr Cheng Kwong On ( Cheng ), 3 engagement partner for the 2010 and 2011 Audits (together with PwC, Auditor ); and Mr Kong Ling Yin, Raymond ( Kong ), 4 engagement quality control reviewer for the 2010 and 2011 Audits. ... The AFRC is committed to upholding audit quality in this area to safeguard the quality of financial reporting in listed companies and maintain Hong Kong’s reputation as an international financial centre. The AFRC appreciates the continuing assistance and support of the Ministry of Finance of the People’s Republic of China in obtaining relevant audit working papers in this case, demonstrating the importance of cross-boundary regulatory cooperation in upholding audit quality and integrity.”
AFRC highlights impact of current economic conditions on financial reporting and audit practices
Audit committees should oversee the process to ensure high-quality financial reporting. ... Ms Janey Lai, CEO of the AFRC, said, “Auditors must assess economic conditions throughout the audit. To ensure a comprehensive audit risk assessment, we reiterate the importance of early involvement by engagement partners and engagement quality reviewers, as the audit risks brought by economic conditions can be far-reaching and necessitate proper planning to address.” ... Ms Lai stressed, “Company directors are responsible for preparing the financial statements with reasonable care and diligence, while auditors must maintain vigilance and professional scepticism to deliver a high-quality audit. Audit committees play a critical role in overseeing both the integrity of financial statements and audit quality.
AFRC issues the Audit Fee Report and 2023 Survey Report on the implementation of Guidelines for Effective Audit Committees – Selection, Appointment and Reappointment of Auditors
Despite AFRC’s efforts in promoting audit quality during auditor selection, listed companies still rank proposed audit fees as one of the top three factors. ... Key findings: Audit Fees Paid by Listed Companies in Hong Kong 2020-2021 (The Audit Fee Report) The way in which audit committees discharge their fiduciary duties and approach issues such as audit quality has a direct impact on the level of audit fees. ... Management and the Board: Not pressure their auditors to reduce audit fees to a level that may compromise audit quality.
AFRC to Organise Regional Regulatory Forum in Hong Kong for the Accounting and Auditing Profession
AFRC to Organise Regional Regulatory Forum in Hong Kong for the Accounting and Auditing Profession 14 October 2025 The Accounting and Financial Reporting Council ( AFRC ) will host the Regional Regulatory Forum (RRF) 2025 on 10 November 2025. Building on last year’s inaugural event, RRF 2025 is expected to gather around 400 local and international guests, including government officials, financial regulators, audit firms, accounting practitioners, governance experts, business leaders and academics. This year’s forum, themed “Accounting for the Future” , will explore the challenges and opportunities shaping accounting and auditing. Panel discussions on governance, audit quality, artificial intelligence (AI), and sustainability assurance will examine the shifting regulatory, environmental, and technological demands.
FRC investigates Next Digital financial statements and audits
FRC investigates Next Digital financial statements and audits 18 August 2021 The FRC today announces the initiation of: (1) An enquiry into the financial statements of Next Digital Limited ( Next Digital ) for the year ended 31 March 2019 ( 2019 Annual Accounts ), year ended 31 March 2020 ( 2020 Annual Accounts ) and six months to 30 September 2020 ( 2021 Interim Accounts ); (2) An investigation into the audit of the 2019 Annual Accounts by Deloitte Touche Tohmatsu ( Deloitte ); and (3) An investigation into the audit of the 2020 Annual Accounts by CCTH CPA Limited ( CCTH ). ... The investigation into Deloitte’s audit of the 2019 Annual Accounts will address their audit work on management’s impairment assessments and the appropriateness of the resulting impairment provisions in those financial statements. ... The investigation into CCTH’s audit of the 2020 Annual Accounts will address their audit work on management’s impairment assessments and the appropriateness of the resulting impairment provisions in those financial statements.
Effective cross-boundary cooperation between the Supervision and Evaluation Bureau of the PRC Ministry of Finance and the FRC
Effective cross-boundary cooperation between the Supervision and Evaluation Bureau of the PRC Ministry of Finance and the FRC 3 December 2020 (3 December 2020, Hong Kong) The FRC has obtained the first of the audit working papers located in the Mainland that it requires to carry out its investigations into possible auditing irregularities. ... The objective of the MoU is for the SEB and the FRC to work collaboratively on the basis of mutual reliance to: Enhance the quality and reliability of listed entities’ audits; Protect the interests of investors and the public; and Strengthen public trust in audits and investor confidence in the capital markets. ... Under the MoU, the FRC has made requests for the SEB’s assistance in gaining access to audit working papers located in the Mainland.
AFRC starts inspecting engagements involving audit working papers located on the Mainland
It is the statutory duty of the AFRC, as the independent regulator of the accounting profession of Hong Kong, to uphold the financial reporting quality of listed entities and the quality of their audits so as to protect investors’ interests. ... The consensus and the agreed mechanism are a testament to the strategic intent between the SEB and the AFRC to collaborate seamlessly to ensure audit quality. The arrangement not only facilitates AFRC’s inspection of engagements involving AWP-C but also sends a strong message to PIE auditors that their audit engagements are subject to the AFRC’s quality review no matter where they keep their audit working papers. The AFRC is grateful for the staunch support from the SEB and looks forward to expanding and expediting their mutual cooperation to enhance the financial reporting quality and audit quality in furtherance of the public interest.
Chairman and CEO's opinion piece: Getting an audit wrong can have profound consequences for credibility
This oversight helps ensure audit quality is upheld, not assumed. ... Their choices can either strengthen audit quality — or allow it to erode over time. What audit committees should evaluate To protect investors, the focus must shift from price to quality, across four dimensions: People and leadership: Audit quality begins with people.